The fact that not everyone places all of his/her savings in U.S. Treasury bonds indicates that:

A. most investors are not risk averse.
B. most people are risk-neutral.
C. many investors are actually risk seekers.
D. even risk-averse people will take risk if they are compensated for it.


Answer: D

Economics

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If the velocity of money is about 1.8 and the money stock is about $8 trillion, what is the real GDP?

A. $14.2 trillion B. $4.4 trillion C. $0.8 trillion D. We cannot compute real GDP from the data; we can only compute nominal GDP.

Economics

Monetary restraint is associated with all of the following except

A. A decrease in aggregate demand. B. An increase in the reserve requirement. C. A decrease in interest rates. D. A decrease in the money supply.

Economics

According to the theory of comparative advantage; a good should be produced in that nation where

A. the production possibilities line lies further to the right than the trading possibilities line. B. its cost is least in terms of alternative goods that might otherwise be produced. C. its absolute cost in terms of real resources used is least. D. its absolute money cost of production is least.

Economics

Refer to Table 22-3. Use the table above to calculate the annual growth rate in GDP. Also calculate the total percentage change in the growth from 2013 through 2016

Explain the difference between the average annual growth rate in real per capita GDP from 2013 through 2016 and the total percentage change in growth from 2013 and 2016.

Economics